Prosper.com brings forward the concept of peer to per lending on their site where people like you and me can borrow and lend money to other people. Borrowers have to reveal a lot of information regarding their income, expenses (voluntary) to get people to bid on their loan listing. Using the social security number, prosper polls the credit agencies to derive the credit worthiness of the borrowers, ranking them from AA (best) to E and HR (worst). Those borrowing with an AA credit get the lowest rates (usually between 8% to 10%) whereas those with the worst have to pay quite high rates. Lenders bid on loan listings, usually a part of the asking amount, about $200 - $1000 each. Multiple lenders bid on a listing to fill up the entire loan. If the listing is very popular, or low risk, many people bid and thus drive down the rate offered by the borrower so as to gain a piece of the pie.
Its a beautiful concept and I would like to be a part of the p2p lending community. I have created a listing to help me repay my higher interest college debt replacing it with a lower interest loan. My credit history is rated AA, have a pretty decent job that I start from August and my expenses are pretty low compared to my current income (as well as future income from August onwards). I am a pretty low risk investment and am offering 8% interest. I'll make every payment on time and will most likely pay the loan off early. If you'd like to help me out, please head on over to my listing here, sign up with prosper and bid on my loan any amount you feel comfortable investing in me. Thank you for reading and helping me out.